Even if someone who works for you part-time also has a full-time job where they have had 100% of their FICA withheld for the year, you must withhold the full amount of FICA from their pay. These individuals can obtain a refund of any overpaid FICA on their 1040. Similarly, if a retiree receiving Social Security benefits works for you, say, one day a week, you must withhold FICA.

Don’tassume former employees who return part-time are Independent Contractors.

If they do the same job they did before they left, especially in the same tax year, they are employees, not independent contractors.

Don't base worker status on length of service.

A worker who fits the definition of “employee” is an employee and all employment taxes apply—even if he or she works for you only for a few hours on only one …

If you haven't installed the New Update R9 for QuickBooks 2009 yet, please note that you may get a window that reminds you that you are upgrading the product and asks for your acceptance before proceeding. Just check the box next to the "I understand......" statement and follow the onscreen instructions.

Note: If you have multiple company files in QuickBooks, you will have to do this the first time you open each company file.

Additionally, once your update is installed on one computer, you must do this on all computers that have that company file if you wish to work in the file from a different computer...office/home office, client/accountant, for example.

For more information about this update, I've reprinted my recent blog below.

When you visit the IRS site, you can click on the tab below the picture to order the wall calendar. You can order up to 5 copies! This is GREAT TOOL for bookkeepers and small business owners!

Check Social Security Numbers Online

Now you can verify current and future employee Social Security numbers online. Enroll online, then you can access the SSA site to verify employee social security numbers. Save time, eliminate hassle, verify online!

Open a dedicated checking account and keep a minimum balance of $100 in the account. Then a day or so before your scheduled tax payment, transfer the funds to cover that payment into the "Payroll Tax Checking Account".

I prefer not to have outside entities accessing my primary business account. I use a sep…